Video connections include sales under agency agreements with EchoStar and DirecTV customers and U-verse connections.

5

Includes consumer U-verse Voice over Internet Protocol connections of 2,733 as of September 30, 2012.

6

Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.

Note: For the end of 3Q12, total switched access lines were 33,088, retail business switched access lines totaled 14,619, and wholesale

and coin switched access lines totaled 1,980.

Financial Data

AT&T Inc.

Non-GAAP Wireless Reconciliation

Wireless Segment EBITDA

Dollars in millions

Unaudited

Three Months Ended

9/30/11

12/31/11

3/31/12

6/30/12

9/30/12

Segment Operating Revenues

Service

$

14,261

$

14,347

$

14,566

$

14,765

$

14,906

Equipment

1,345

2,349

1,570

1,588

1,726

Total Segment Operating Revenues

15,606

16,696

16,136

16,353

16,632

Segment Operating Expenses

Operations and support

9,376

12,598

10,083

9,705

10,549

Depreciation and amortization

1,620

1,588

1,666

1,696

1,730

Total Segment Operating Expenses

10,996

14,186

11,749

11,401

12,279

Segment Operating Income

4,610

2,510

4,387

4,952

4,353

Segment Operating Income Margin

29.5

%

15.0

%

27.2

%

30.3

%

26.2

%

Plus: Depreciation and amortization

1,620

1,588

1,666

1,696

1,730

EBITDA

6,230

4,098

6,053

6,648

6,083

EBITDA as a % of Service Revenue

43.7

%

28.6

%

41.6

%

45.0

%

40.8

%

EBITDA is defined as Operating Income Before Depreciation and Amortization.

Financial Data

AT&T Inc.

Non-GAAP Financial Reconciliation

Free Cash Flow

Dollars in Millions

Unaudited

Three Months Ended

Nine Months Ended

September 30,

September 30,

2011

2012

2011

2012

Net cash provided by operating activities

$

10,393

$

11,485

$

27,150

$

28,944

Less: Construction and capital expenditures

(5,262

)

(4,944

)

(14,744

)

(13,816

)

Free Cash Flow

$

5,131

$

6,541

$

12,406

$

15,128

Free cash flow is defined as cash from operations minus construction and capital expenditures. We believe these metrics provide useful information to our investors because management regularly reviews free cash flow as an important indicator of how much cash is generated by normal business operations, including capital expenditures, and makes decisions based on it. Management also views free cash flow as a measure of cash available to pay debt and return cash to shareowners.

Free Cash Flow after Dividends

Dollars in Millions

Unaudited

Three Months Ended

Nine Months Ended

September 30,

September 30,

2011

2012

2011

2012

Net cash provided by operating activities

$

10,393

$

11,485

$

27,150

$

28,944

Less: Construction and capital expenditures

(5,262

)

(4,944

)

(14,744

)

(13,816

)

Free Cash Flow

5,131

6,541

12,406

15,128

Less: Dividends paid

(2,545

)

(2,551

)

(7,627

)

(7,738

)

Free Cash Flow After Dividends

$

2,586

$

3,990

$

4,779

$

7,390

Financial Data

AT&T Inc.

Non-GAAP Financial Reconciliation

Annualized Net-Debt-to-EBITDA Ratio

Dollars in millions

Unaudited

Three Months Ended

3/31/12

6/30/12

9/30/12

2012 YTD

Operating Revenues

$

31,822

$

31,575

$

31,459

$

94,856

Operating Expenses

25,721

24,758

25,422

75,901

Total Operating Income

6,101

6,817

6,037

18,955

Add Back Depreciation and Amortization

4,560

4,499

4,512

13,571

Total Consolidated EBITDA

10,661

11,316

10,549

32,526

Annualized Consolidated EBITDA*

43,368

End-of-period current debt

3,433

End-of-period long-term debt

60,314

Total End-of-Period Debt

63,747

(Premiums) Discounts on long-term debt

(32

)

Normalized Debt Balance

63,715

Less Cash and Cash Equivalents

2,217

Normalized Net Debt Balance

61,498

Annualized Net-Debt-to-EBITDA Ratio

1.42

*EBITDA is annualized by dividing YTD EBITDA by YTD number of quarters and multiplying by four.

Note: 4Q12 EBITDA will exclude the impact of benefit plan actuarial gains/losses in order to better represent AT&T's operational performance.